The Competition Authority has today published a report on commercial agreements between suppliers and food retailers, and other business cooperation in the food market. The background to the report is that the Competition Authority has recently collected and reviewed a number of commercial contracts between suppliers and food retailers, and other resellers, in order to assess their impact on competition in the food market. The data collection focused on around 70 suppliers. The report constitutes the conclusion of that investigation. The report also discusses food prices and the lobbying activities of business associations in the food market.
- The price of food is on average 64% higher in Iceland than in the EU average.
- Many contracts between suppliers and supermarkets contain provisions that may distort competition to the detriment of consumers.
- A survey by the Competition Authority indicates that suppliers' pre-labelling of food products restricts price competition between supermarkets. The price differences for these products between stores are many times smaller than those for similar products that are not pre-labelled.
- The Competition Authority is advising suppliers and supermarkets to ensure that their agreements do not include barriers to competition.
- In a report by the Competition Authority, published today, attention is drawn to certain aspects of contracts that may constitute barriers to competition, and guidance is provided on the types of contractual provisions that could potentially distort competition in the food market.
- The Competition Authority will ensure that agreements do not constitute a breach of competition law. Companies found to be in breach of competition law can expect to face sanctions.
- With the above measures, it is possible to boost competition and lower prices for Icelandic consumers.
Report (PDF document – Opens in a new window) Competition Authority
Press release (PDF document – Opens in a new window)
